factual

In Crepe De Licious arbitration, can the arbitrator award injunctive relief?

Crepe_De_Licious Franchise · 2025 FDD

Answer from 2025 FDD Document

16.3.1 The arbitrator has the right to award or include in his or her award any relief which he or she deems proper, including, without limitation, money damages (with interest on unpaid amounts from the date due), specific performance, injunctive relief, and attorneys' fees and costs (as allowable under this Agreement or applicable law), provided that the arbitrator may not declare any Mark generic or otherwise invalid or, as expressly provided in Section 16.10 below, award any punitive, exemplary or multiple damages against either party.

Source: Item 22 — CONTRACTS (FDD page 57)

What This Means (2025 FDD)

According to the 2025 Crepe De Licious Franchise Disclosure Document, in arbitration, the arbitrator has the authority to award injunctive relief. The arbitrator can include in their award any relief deemed proper, including money damages with interest, specific performance, injunctive relief, and attorneys' fees and costs if allowable under the agreement or applicable law.

However, the arbitrator cannot declare any mark generic or otherwise invalid, or award punitive, exemplary, or multiple damages against either party, as expressly provided in Section 16.10 of the agreement. This means that while the arbitrator has broad powers to provide remedies, there are specific limitations on those powers.

This clause ensures that Crepe De Licious franchisees and the franchisor have access to a full range of potential remedies in arbitration, while also protecting the brand's trademarks and preventing excessive damage awards. It is a fairly standard clause in franchise agreements to allow for injunctive relief, as monetary damages may not always be sufficient to address certain breaches of contract, such as violations of non-compete agreements or misuse of confidential information.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.